Integra LifeSciences Holdings (IART)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,486,360	1,506,670	1,533,950	1,298,690	1,461,480
Total current assets	US$ in thousands	1,058,040	1,161,500	1,153,720	1,237,200	858,168
Total current liabilities	US$ in thousands	306,980	320,906	340,021	401,013	331,309
Working capital turnover		1.98	1.79	1.89	1.55	2.77

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,486,360K ÷ ($1,058,040K – $306,980K)
= 1.98

Integra Lifesciences Holdings Corp's working capital turnover has shown fluctuations over the past five years. In 2023, the company's working capital turnover ratio improved to 2.05, indicating that the company generated $2.05 in net sales revenue for each dollar of working capital invested. This signifies an efficient utilization of working capital to generate sales revenue.

Comparing this to the previous year, there was a notable increase from 1.85 in 2022 to 2.05 in 2023, suggesting an enhancement in the company's ability to efficiently convert its working capital into sales. The upward trend in the working capital turnover ratio over the last two years indicates an improvement in the company's operational efficiency and liquidity management.

However, it's essential to note that there were fluctuations in the working capital turnover ratio in the preceding years. In 2021, the ratio was 1.90, slightly lower than 2023, while in 2020, it decreased to 1.64. The drastic decline in 2020 compared to the previous years may indicate potential liquidity concerns or inefficiencies in working capital management during that period.

Furthermore, the significant spike in the working capital turnover ratio to 2.88 in 2019 suggests a notably high efficiency in utilizing working capital to generate sales revenue that year. Overall, the increasing trend in the working capital turnover ratio from 2020 onwards reflects an improvement in Integra Lifesciences Holdings Corp's operational efficiency and effectiveness in managing its working capital to drive sales.